Libyan money could be used for projects in Northern Ireland as a way to reconcile the two countries, an MP has said.

Jeffrey Donaldson is working to secure a compensation payment from the new Libyan government for victims of IRA terrorism.

The DUP MP for Lagan Valley also said a list of proposals had been drawn up to suggest wider ways in which relations could be improved between the countries.

He said: "It's at a very tentative stage. There could be funding of some projects to help rebuild communities that have been badly affected by violence, both in Northern Ireland and Libya."

Mr Donaldson hopes to set up a meeting in London with the new Libyan representatives.

As revealed by the Belfast Telegraph, a delegation of Troubles victims plans to visit Libya to show solidarity with the insurgents once order is restored.

A signed statement from the chairman of the Libyan National Transitional Council pledges to settle the claims of 147 victims suing Libya and to consider an "appropriately resourced humanitarian fund for IRA victims".